zON GST RATE ON SERVICES AS RECOMMENDED BY THE GST COUNCIL IN ITS 37th MEETING HELD ON 20th SEPTEMBER, 2019
- GST on hotel accommodation service and outdoor catering services.
- Supply of job work services in relation to diamonds.
- Supply of machine job work services in engineering industry except bus body building.
- Recommended for processed agricultural product warehousing / storage service.
- Clarification related to place of supply for:
- R&D services provided by Indian pharma companies to Foreign Service recipients as location of service recipient.
- Chip design software R&D services provided by Indian companies to foreign clients as location of service recipient.
- Recommendation of reverse charge on renting of vehicle:
- Renting of vehicle services provided by non-body corporate entities (opting to pay tax @5%) to body corporate entities would attract RCM @5%.
- Rate reduction recommended on goods-
- on cut and polished semi- precious stones to be reduced to 0.25%.
- Rate increment recommended on goods-
- Railway wagons, coaches, rolling stock (without refund of accumulated ITC).
- Increased to 28% along with compensation cess @12% on caffeinated beverages.
- Rationalization of rate recommended-
- 12% on Polypropylene / Polyethylene Woven and Non- Woven Bags and sacks used for packing of goods.
- Reduction of compensation cess on vehicles-
- Change in compensation cess on specified Passenger vehicle reduced to 1% for petrol vehicles and 3% for diesel vehicles.
- Clarifications for applicability of GST rates recommended as:
- All “mechanical sprayers” falling under HS Code 8424 would attract 12% GST.
- Solar Evacuation tubes, solar water heater, solar steam, generation systems would be eligible to 5% GST rate.
Note- The above recommended rate changes shall be made effective with effect from 1st October, 2019 by issuing further notifications.
- Relaxation in filing of annual returns for MSMEs for FY 2017-18 and FY 2018-19 as
|Tax payer||Required to file GST Annual Return|
|Composition tax payer (GSTR-9A)||Not required|
|Normal tax payer having turnover up to two crore||Not required|
- New return system now to be introduced from April, 2020 earlier it was to be introduced w.e.f October 2019.
- Due date for filing GSTR-3B and GSTR-1 for the period October, 2019 to March, 2020 will be declared shortly.
- To link Aadhar with registration of taxpayers under GST and claiming refunds.